"The result is that the unique network ID of your socket is transported in an unencrypted form to the Chinese server" The use of The word "Chinese" in this article is amusing. Is it really important or necessary? Would it be preferable if the data was sent to a US server ?
If you're a US citizen, you would be a bit better off if it was a US server, because the records from the server would be available to the US court system. This is helpful if a customer ends up suing the company, or if there is a security breach that is investigated by US-based law enforcement. I agree, the inclusion does hint at Sinophobia. But it's also a valid detail for security conscious customers to consider.
These devices are developed in China and hence have Chinese IPs for some call-home feature. As much as I want to be skeptical, I wonder what the HN community would say if it'd be a US or French IP.